The U.S. Department of Education moved this week to make it easier for colleges to reconsider and potentially increase financial aid for students who have lost jobs or family income in the economic crisis. The move comes after NPR reported in June that the department had shelved guidance meant to encourage college aid administrators to exercise what’s known as “professional judgment” and reconsider aid for students whose finances have changed.
Most students planning to attend college in the fall submitted financial information from 2018 — information that may now be woefully outdated for many families given the current, pandemic-driven recession. But reconsidering financial aid packages for too many students can trigger an investigation from the Department of Education to make sure schools aren’t misusing funds. These reviews can be labor-intensive and lead to costly fines.
In 2009, in response to the Great Recession, the Obama administration assured schools they would not be punished for helping students. In recent months, with job losses mounting, college financial aid administrators began asking if that 2009 guidance was still active, said Justin Draeger, president of the National Association of Student Financial Aid Administrators.